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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

Oct. 9, 2009
June 22, 2011
Contractor Services


Part 12. Independent Contractors - Table of Contents


A. Introduction

There are occasions when departments require the services of individuals not employed by the university. These individuals are considered independent contractors and prior authorization of their services and fees is required. The type of services performed and amount being paid will determine what type of approvals and authorizations will be necessary.

Unique services are authorized by:

  • PBS electronic documents in POINT Plus (in most situations)
  • APS paper form (in certain circumstances)
  • Contract (if payment is in excess of $25,000 or if special terms are required)

General and readily available services are normally authorized by a purchase order.

B. Authorization and Payment Overview

To obtain the services of an individual or sole proprietor, prior approval must be obtained by completing the following forms:

The PIF establishes a vendor record for the payee. Once these forms have been completed, a payment voucher (*DEFINE VP2) must be created and routed to the Office of Accounting for review and final approval.

The Office of Accounting is also responsible for year-end reporting of nonemployee compensation required by the IRS on forms 1099 for U.S. citizens and 1042S for nonresidents.

C. Additional Resources


* This system is in UT Direct and requires proper authorizations in *DEFINE

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Part 12. Independent Contractors - Table of Contents